Replication files

“An Estimated Model of Household Inflation Expectations: Information Frictions and Implications”
Shihan Xie

This file describes the code and data that are used for replication.
For any issues/questions about the code, please email shihan.xie@gmail.com

Content of this folder

(1) Stata folder
This folder contains the do file (msc.do) and raw data from the Michigan Survey of Consumers (msc.dta) that generates the data household expectations by education level.

(2) matlab folder
This folder contains programs that replicates all figures and tables in the paper. 
The software version is MATLAB R2022a

	- paths.m
		To run the code, first change the directory in  to the location of the this folder on your computer
	- main.m
		Generates Figure 1, 3, 4, 5 and results reported in Table 1, 2
	- fig.m
		Plots Figure 1, 3, 4, 5
	- counterfactual.m
		Generates Figure 2
	- pc.m 
		Generates Figure 6 and Table 3
	- mp_irf.m
		Generates Figure 7
	- forecast.m
		Generates MSE and MAE of model real-time forecasts reported in Section 5.3

	functions folder: matlab functions called by other programs

	figure folder: stores figures

	output folder: matlab data generated by main.m

(3) data folder
This folder contains data used for analysis

	- agg_pxeducg.csv 
		Household expectations by education level created by msc.do file. The original data can be downloaded from Michigan Survey of Consumers’ website

	- spf.csv
		Survey of Professional Forecasters data downloaded from Philadelphia fed website

	Data from FRED:
	- inflation.csv
	- oilprice.csv
	- unemp.csv
